VNET Group (NASDAQ:VNET) Trading Down 5.5% – Here’s Why

VNET Group, Inc. – Unsponsored ADR (NASDAQ:VNET) was down 5.5% on Thursday . The company traded as low as $7.53 and last traded at $7.7050. Approximately 1,418,878 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 7,212,473 shares. The stock had previously closed at $8.15.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of VNET Group in a research report on Friday, March 27th. Jefferies Financial Group restated a “buy” rating and issued a $24.79 price objective on shares of VNET Group in a research note on Tuesday, May 26th. Wall Street Zen raised VNET Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Morgan Stanley reissued an “overweight” rating and issued a $16.00 target price on shares of VNET Group in a report on Wednesday, May 27th. Finally, Bank of America set a $16.30 price target on shares of VNET Group and gave the stock a “buy” rating in a report on Tuesday, May 26th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $19.03.

VNET Group Trading Down 4.7%

The company has a market cap of $2.10 billion, a price-to-earnings ratio of -5.66 and a beta of 0.25. The company has a debt-to-equity ratio of 3.99, a current ratio of 0.99 and a quick ratio of 0.99. The firm’s fifty day moving average price is $9.34 and its 200-day moving average price is $9.78.

VNET Group (NASDAQ:VNET) last posted its earnings results on Tuesday, May 26th. The information technology services provider reported ($1.20) EPS for the quarter, missing the consensus estimate of ($0.03) by ($1.17). VNET Group had a negative net margin of 22.01% and a negative return on equity of 31.59%. The business had revenue of $390.32 million during the quarter, compared to analyst estimates of $388.47 million. On average, equities analysts expect that VNET Group, Inc. – Unsponsored ADR will post -0.24 EPS for the current fiscal year.

Insider Activity

In other VNET Group news, Director Sean Shao sold 60,000 shares of VNET Group stock in a transaction on Monday, June 1st. The stock was sold at an average price of $1.71, for a total transaction of $102,600.00. Following the completion of the transaction, the director directly owned 983,820 shares of the company’s stock, valued at approximately $1,682,332.20. This trade represents a 5.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 12.10% of the stock is owned by company insiders.

Institutional Trading of VNET Group

Several institutional investors have recently added to or reduced their stakes in VNET. Leonteq Securities AG bought a new stake in shares of VNET Group in the first quarter valued at approximately $25,000. Global Retirement Partners LLC acquired a new stake in shares of VNET Group during the 4th quarter worth $27,000. EverSource Wealth Advisors LLC increased its position in shares of VNET Group by 52.2% in the second quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider’s stock worth $29,000 after purchasing an additional 1,426 shares during the period. Parallel Advisors LLC raised its stake in VNET Group by 26.8% in the first quarter. Parallel Advisors LLC now owns 5,495 shares of the information technology services provider’s stock valued at $46,000 after purchasing an additional 1,160 shares in the last quarter. Finally, Allianz SE bought a new stake in VNET Group during the fourth quarter worth about $50,000. 72.83% of the stock is currently owned by institutional investors.

VNET Group Company Profile

VNET Group, Inc (NASDAQ: VNET) is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company’s product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.